City Receives Excellent Rating on Strong Economic Profile

The City of St. John’s has again received a positive credit rating of ‘A+’ from international credit rating agency Standard and Poor’s. Consistent with previous ratings this demonstrates the City’s commitment to prudent fiscal management.
 
“The City recently released its $1.25 billion dollar capital plan. As the City borrows to finance these projects our positive credit rating will help keep costs down for taxpayers,” says Councillor Danny Breen, Chair of the Finance and Administration Standing Committee. “The report is evidence of our strong economy, strong budgetary flexibility and very low contingent liabilities. Fiscal responsibility is a pillar of our strategic plan and this rating affirms our commitment to this value.”
 
In addition, the report indicates that St. John’s economy will continue to grow due to large capital investments in the offshore oil industry and their sectors, leading to continued high employment and personal incomes in the next two years.
 
The Standard and Poor’s report states that “St.John’s demonstrates satisfactory financial management practices, in our view. The city releases annual financial statements, a three-year operating budget, as well as a 10-year capital plan, which it introduced in 2015. We consider St. John’s debt and liquidity management to be prudent with conservative borrowing practices.”
 
The recently released Economic Outlook 2015 also points to a stable local economy, showing marginal growth, economic activity in project development, and a decline in youth unemployment.

Media Contact:
Kelly Maguire
Media Relations
City of St. John's
709-576-8491
kmaguire@stjohns.ca